1. We generally pay to our supplier by way of Letter of Credit (LC).
2. Since LC is having due date 90-180 days supplier gets LCs discounted with banks for immediate payment.
3. Discounting bank deduct interest for 90-180 days (depending on LC duration) and pays balance amount to supplier.
4. Supplier claims back that interest (bills discounting charges) reimbursement from us through a debit note with supporting bank advice.
Whether is there any tds liability in above case
CAclubindia
